{"id":1043,"date":"2010-10-27T10:35:55","date_gmt":"2010-10-27T10:35:55","guid":{"rendered":"https:\/\/nybankruptcy.net\/main\/?p=1043"},"modified":"2018-11-28T08:44:10","modified_gmt":"2018-11-28T08:44:10","slug":"new-ftc-rules-on-debt-settlement-companies-what-you-should-know","status":"publish","type":"post","link":"https:\/\/nybankruptcy.net\/main\/new-ftc-rules-on-debt-settlement-companies-what-you-should-know\/","title":{"rendered":"New FTC Rules on Debt Settlement Companies: What you should know"},"content":{"rendered":"

\"\"<\/a>New Yorkers in search of debt relief often seek out debt settlement companies.\u00a0 As I’ve mentioned in previous posts<\/a>, debt settlement companies should really be avoided and are not to be trusted.<\/p>\n

That said, the Federal Trade Commission (FTC)<\/strong> recently issued new rules<\/a> intended to protect consumers from debt settlement companies.\u00a0 So in the event you’re still inclined to “get quick debt relieft” from a debt settlement agency, here are some things to know about the new rules:<\/p>\n

1.\u00a0 No up-front fees: <\/strong> It’s never a good idea to pay an up-front fee to a debt settlement or debt relief agency.\u00a0 The new rules now make it illegal for them to require payment up front.\u00a0 In fact, they cannot request payment until they have worked out an agreement with your creditors, shown you the agreement (i.e., in writing) and received your signoff to go ahead and execute the agreements on your behalf.\u00a0 Only then can they ask you for a payment.<\/p>\n

2.\u00a0 Only applies if it’s a phone call:<\/strong> That’s right, the new rules only apply if this is done over the phone.\u00a0 If a representative from a debt settlement company meets you in person–your home, their office, a coffee shop, wherever–the “no up-front fees” rule does not apply.\u00a0 Why?\u00a0 Because the FTC is only authorized to regulate phone calls and uses that authority to regulate what debt settlement agencies can do and say when using the phone.\u00a0 But they don’t have jurisdiction over in-person contact.\u00a0 So if you do talk on the phone with a debt settlement representative, you can likely expect a follow-up visit or meeting.<\/p>\n

3.\u00a0 Beware of phony law firms:<\/strong> These new FTC rules don’t affect lawyers, since lawyers meet with clients in person.\u00a0 (Or at least decent, experienced and qualified lawyers do.)\u00a0 As a result, there have been some incidents of debt settlement companies setting themselves up as a law practice as a front for their debt settlement work.\u00a0 For example, a Florida-based “law firm” called the Consumer Law Group ran a classic “advanced fee scam”<\/a> that took advantage of hundreds of people in North Carolina and was eventually nailed by the North Carolina State Attorney General.<\/p>\n

The best way to protect yourself in these situations is, of course, to avoid debt settlement companies, period.<\/p>\n

(CLICK HERE<\/a> to learn more about debt forgiveness, tax implications <\/a><\/strong>and <\/a>1099s<\/a><\/strong>.)<\/em><\/p>\n

If you are in need of New York debt relief, please feel free to contact me for a free initial consultation.\u00a0 I’ve been helping people for years to deal with their New York debt and bankruptcy problems, and I can help you figure out all of your options and determine the best strategy moving forward.<\/p>\n

Contact Bruce Weiner, Esq.<\/a><\/h2>\n

EMAIL Bruce Weiner<\/a><\/strong>
\nPhone<\/strong>
\n(718) 855-6840 (Local)
\n(866) 402-8476 (Toll Free)
\nFax<\/strong> (718) 625-1966<\/p>\n

Go to\u00a0fair debt collection practices act<\/a><\/strong><\/em>\u00a0t<\/em>o learn more about Rosenberg Musso & Weiner LLP<\/strong><\/a> and\/or to set up a free consultation.<\/em><\/p>\n

<\/center><\/p>\n","protected":false},"excerpt":{"rendered":"

New Yorkers in search of debt relief often seek out debt settlement companies.\u00a0 As I’ve mentioned in previous posts, debt settlement companies should really be avoided and are not to be trusted. That said, the Federal Trade Commission (FTC) recently issued new rules intended to protect consumers from debt settlement companies.\u00a0 So in the event …<\/p>\n

New FTC Rules on Debt Settlement Companies: What you should know<\/span> Read More \u00bb<\/a><\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-global-header-display":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":""},"categories":[7,27],"tags":[48,162],"acf":[],"yoast_head":"\nNew FTC Rules on Debt Settlement Companies: What you should know<\/title>\n<meta name=\"description\" content=\"New Yorkers in search of debt relief often seek out debt settlement 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